new mortgage with previous bad credit

hotchili

hello everyone,
Lots of help and advice needed and I am sure you guys can all help.

I am a single parent with a 4 year old daughter and looking to purchase a house.

I am looking to buy at £200k with a deposit of £50-£60k.

I have no debt now but only a few months ago I cleared several credit/cards and loans. My credit rating has jumped up to 959 (good) with experian and this is still to be updated by some of my previous creditors.

I have absolutely no outgoings at all and earn £1700 per month (£30,000 per annum).

What do you think is the possibility of getting a mortgage and should I go direct to a preffered bank or go to a broker?

Look forward to hearing what you all think. xx

monty-doggy

Have you checked equifax too? They can vary a lot. I had a great report with one and a crap with the other, I used an node pendant broker who used lenders who only checked the one I scored highest on and then found the best deal.

Building_Surveyor

No outgoings at all, but you have a 4 year old daughter and are a single parent, please elaborate?

Abu-Dina

hotchili wrote: »

hello everyone,
Lots of help and advice needed and I am sure you guys can all help.

I am a single parent with a 4 year old daughter and looking to purchase a house.

I am looking to buy at £200k with a deposit of £50-£60k.

I have no debt now but only a few months ago I cleared several credit/cards and loans. My credit rating has jumped up to 959 (good) with experian and this is still to be updated by some of my previous creditors.

I have absolutely no outgoings at all and earn £1700 per month (£30,000 per annum).

What do you think is the possibility of getting a mortgage and should I go direct to a preffered bank or go to a broker?

Look forward to hearing what you all think. xx

The title of the thread mentions bad credit but I don't see anything in the post to explain what it is? Owing money on credit cards doesn't mean bad credit but the general advice on here is pay off the credit cards before applying for a mortgage if you can.

kingstreet

A gross income of £30k with one dependent indicates a maximum mortgage of £143,000, perhaps +/- if there are childcare costs and tax credits and child benefit which will also be taken into account.

Direct or broker is down to you. Confident ofr finding the best deal, right lender yourself, or need help and hand-holding with the buying process?

Thrugelmir

What form was the bad credit, a DMP ?

Why the sudden improvement in your financial situation?

hotchili

hi thanks for all your replies above.

What I meant by no outgoings is that I don't have any credit cards/loans/store cards/mortgage payments etc as I am currently staying at home with parents saving! Moving back home came after a relationship breakdown which is why I have now been able to clear debt and save.

By bad credit I mean a few late payments over the years but these accounts have now been successfully settled.

What I dont want to do is apply, get declined, and then have to apply again leaving a bad trail.

ffor99

Hi, your situation is very similar to mine. I am in the middle of purchasing my first house on my own and have one son. I don't think getting a mortgage is your problem - the problem though is the amount you want to borrow. On £30k and the amount you need to borrow (if the banks would lend you that) may mean you will fail the affordability test. Best thing to do is get a decision in principle from the bank/broker. That way you'll know exactly how much you can borrow and what your potential monthly repayments will be.

Dave_Ham

Broker case I think, or a lot of studying..

Agree with above, so long as none of your old accounts officially defaulted and worthwhile checking this with the credit reference agencies then you should be ok.

You may need to revise your expectations on property prices though and lender selection will be critical to optimising this.

Good luck